Castagna pampers Bpm members to dissuade predators
All the details on Banco Bpm's quarterly report. Facts, figures and declarations (anti-mergers) by Castagna.
Sparkling start to the year for Banco Bpm which closes the first quarter with profit growing by almost 50% to 265 million and with targets for 2023 and 2024 on the rise. For the next two years, the institute led by Giuseppe Castagna expects to distribute 1.25 billion euros in dividends, double the previous two years.
Announced in the second half of 2023 the new business plan, which will take into account the new profitability prospects.
THE NUMBERS OF THE FIRST QUARTER OF BANCO BPM
As we said, in the January-March period, Banco Bpm's profit grew on year by 49.2% to 265 million euro, exceeding the expectations of analysts, who expected a profit just under 220 million euro. Revenues rose by 5.4% to 1.25 billion (the consensus was 1.245 billion) thanks to the interest margin, +45.2% on the year and +2.6% on the quarter, to 743 million euros, which leads the institute – as highlighted in a note – to the "best performance ever".
A positive sign also for the gross result from current operations at 474.2 million (+18.8%), a record level on a quarterly basis, and for the profit net of non-recurring items at 270.5 million. The cost-income ratio decreased from 52.7 to 51.2%, although expenses increased by 2.5% to 640 million euros, and loan adjustments from 151.1 million to 137.4 million euros, with NPL coverage levels from 50.6% at the end of 2022 to 51.4%. Net NPLs represent 2.1% of the total, 1.9% if calculated with the EBA methodology, specified from Piazza Meda.
And again: net performing 'core' loans, i.e. mortgages, loans, current accounts and personal loans, grew slightly, +1% year on year to 102.3 billion euro, with new loans to customers for 5.28 billion.
Direct banking deposits were stable in the first quarter at 123.2 billion, while indirect deposits rose from 91.3 to 95.6 billion. As regards equity, the Cet1 ratio indicator strengthened to 14.15%.
CASTAGNA: ESTIMATES INCREASE, EXCESS CAPITAL FOR THE SHAREHOLDERS AND NOT FOR THE MERGER
Very satisfied with the quarterly report, as expected, the CEO Castagna: "We are very proud of these excellent results which allow us to raise our estimates to a higher level of ambition than the business plan forecasts but also the most recent guidance we have given on the occasion of the 2022 results”. During the conference call with analysts, Ansa reports, Castagna said that "in 2023-2024 we will substantially double the net result of 2021 and 2022". The note accompanying the accounts specifies that Banco Bpm has raised its 2023 profit target to 1.1 billion euro, with earnings per share of 0.75 euro against the previous guidance of 0.6 euro, and 1.4 billion that for 2024, with a revised guidance from 0.75 to 0.9 euros.
As regards excess capital until the end of 2024 – with a Cet1 "above 14%, which is not our target" – the manager specified that it could be used for shareholder remuneration and not to proceed on the path of mergers and acquisitions. "We don't think" that the M&A "can give us the same remuneration" – he explained during the call with the analysts – and instead "we are very confident of increasing the remuneration for the shareholders".
EXPECTED INCREASE IN DIVIDENDS
In this regard, reports Ansa again, Castagna stated that "Banco Bpm's management feels comfortable with the new guidance that will double the performance for 2021 and 2022 " and aims to "consider an increase in the remuneration of our shareholders” with the new industrial plan. “Today we feel that it is time to go further – he continued – and with the new industrial plan to have a different remuneration for shareholders. Give us time to fix these numbers”.
As mentioned, the group has decided that it will distribute 1.25 billion euros in dividends over the next three years, or around 22% of the bank's current market capitalisation. In particular, it is expected to distribute a total of coupons of 570 million in 2023 and 670 million in 2024, double the 288 million distributed in 2021 and the 348 million in 2022.
CHESTNUT: ON POS AND CREDIT CARDS UNDER JUNE
During the call Castagna highlighted that Banco Bpm intends to sign a termsheet "by the end of June 2023" to enhance the activities related to POS and credit cards, a process announced on 18 April last. And also the proceeds derived from it will be able to "create further space for the remuneration of the shareholders".
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/castagna-coccola-i-soci-di-bpm-per-dissuadere-i-predatori/ on Tue, 09 May 2023 08:58:40 +0000.